Correlation Between WEBUY GLOBAL and IPower
Can any of the company-specific risk be diversified away by investing in both WEBUY GLOBAL and IPower at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WEBUY GLOBAL and IPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEBUY GLOBAL LTD and iPower Inc, you can compare the effects of market volatilities on WEBUY GLOBAL and IPower and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in WEBUY GLOBAL with a short position of IPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBUY GLOBAL and IPower.
Diversification Opportunities for WEBUY GLOBAL and IPower
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WEBUY and IPower is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc and WEBUY GLOBAL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on WEBUY GLOBAL LTD are associated (or correlated) with IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of WEBUY GLOBAL i.e., WEBUY GLOBAL and IPower go up and down completely randomly.
Pair Corralation between WEBUY GLOBAL and IPower
Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to under-perform the IPower. In addition to that, WEBUY GLOBAL is 1.17 times more volatile than iPower Inc. It trades about -0.04 of its total potential returns per unit of risk. iPower Inc is currently generating about 0.04 per unit of volatility. If you would invest 84.00 in iPower Inc on August 27, 2024 and sell it today you would lose (14.00) from holding iPower Inc or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.53% |
| Values | Daily Returns |
WEBUY GLOBAL LTD vs. iPower Inc
Performance |
| Timeline |
| WEBUY GLOBAL LTD |
| iPower Inc |
WEBUY GLOBAL and IPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEBUY GLOBAL and IPower
The main advantage of trading using opposite WEBUY GLOBAL and IPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL position performs unexpectedly, IPower can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IPower will offset losses from the drop in IPower's long position.| WEBUY GLOBAL vs. MOGU Inc | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Jeffs Brands | WEBUY GLOBAL vs. Kidpik Corp |
| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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